Apollo Commercial launches amendment to modify covenants

By Sara Rosenberg

New York, Dec. 2 – Apollo Commercial Real Estate Finance Inc. held a lender call at 1 p.m. ET on Thursday to launch an amendment to its $489 million term loan B due May 2026 and its $299 million term loan B-1 due March 2028 that would revise the debt to net worth covenant to 4x from 3x, according to a market source.

The amendment would also change the unencumbered asset coverage test to 2.5x from 1.2 x and modify the definition to include residual repo equity, the source said.

JPMorgan Chase Bank is the lead on the deal.

Lenders are being offered a 50 bps amendment fee.

Consents are due at 5 p.m. ET on Tuesday, the source added.

Apollo Commercial is a New York-based commercial real estate finance company.

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